In a pronounced fall from grace, Staccato Powell, a former African Methodist Episcopal Zion Church bishop, has admitted to scamming several California congregations. Powell pleaded guilty to wire fraud, mail fraud, and conspiracy to commit these crimes, reported the U.S. Attorney's Office Northern District of California. His co-defendant, Sheila Quintana, already pleaded guilty to conspiracy charges in April.
Chosen as bishop in 2016 and charged with overseeing churches across the Western Episcopal District, which includes California, Powell spearheaded a scheme to divert church properties into the control of a company he created, Western Episcopal District, Inc. (WED, Inc.). As reported by the U.S. Attorney's Office, he was WED, Inc.'s CEO, with Quintana serving as CFO. To seal the deception, Powell had pastors issue deeds to transfer property ownership directly to their company, which were later used as collateral for loans with falsified church resolutions supporting the transactions.
Among the affected congregations was the Kyles Temple in Vallejo, used as collateral without consent, to procure a grandiose $1.5 million episcopal residence. Similarly, First AME Zion Church in San Jose and University AME Zion Church of Palo Alto were entangled in unauthorized mortgages and loans, all channeled toward Powell's and WED, Inc.'s benefit. The Greater Cooper AME Zion Church in Oakland and the First AME Zion Church in Los Angeles likewise fell prey to Powell's scheme, seeing their properties hijacked and financially encumbered based on counterfeit church resolutions and forged signatures.
In a plea agreement, Powell conceded to the fraudulent acquisition of mortgages on numerous church properties, with at least $3 million to be repaid in restitution, and possible forfeitures concerning the AME Zion Church denomination's properties. As agents unraveled the web of deceit, it emerged that Powell had siphoned off funds obtained through these church properties for personal purchases and mortgage payments in North Carolina. He guided WED, Inc. into filing for bankruptcy in 2020, where 11 churches and additional assets were listed as having a combined value exceeding $26 million against over $12 million in debt.
Powell awaits a sentencing hearing scheduled for September 23, where he could face up to 20 years and a $250,000 fine for each count, based on Federal sentencing guidelines and statutes. The probe led by the FBI culminated in this case presented by Assistant U.S. Attorney Jonathan U. Lee, bolstered by staff Helen Yee, Kathy Tat, and Yenni Weinberg. United States Attorney Craig H. Missakian and FBI Special Agent in Charge Sanjay Virmani affirmed the prosecution, revealing another layer of the misdeeds that rattled the AME Zion Church community.
